7 High-Yield Stocks With Bullish Price Trends

NEW YORK ( TheStreet) -- It's hard to beat owning a high-yield stock. With other types of investing paying next to zero, equities continue to offer attractive yields.

Of course a high yield doesn't mean much in the face of a large capital loss resulting from a company board's decision to terminate future dividend payments indefinitely. Radioshack ( RSH) presents a recent illustration of a "yield trap"; a stock paying a very high yield that is unsustainable due to a lack of earnings.

The most dangerous action an investor can take is buying a stock solely based on the yield. Sure, we all want to own high-yield stocks, but unless you take the time to perform the necessary due diligence, you will permit inessential peril and hazard to your portfolio.

In this article, you have an opportunity to review stocks that meet my recommended starting point for examination. Out of thousands of stocks trading, how does a company make it on this list?
  • A stock must be liquid and trade with a small bid-ask spread to avoid slippage
  • The company must have a history of dividend payments and increases in payments
  • The company needs to demonstrate the ability to continue paying the current dividend or more
  • The stock chart must be in a bullish uptrend; there is no point in looking for a 4% yield if the shares are expected to drop 5% in the next year
  • How does an investor use this list of dividend stock ideas? This should be your starting point, not an end-all for your research. Make sure the industry and company is a match for your investment objectives. Use your current professional knowledge as applicable to garner a market edge when entering or exiting a position.

    RAI Chart RAI data by YCharts

    Reynolds American (RAI)

    Who They Are: Reynolds American is the parent company of R.J. Reynolds Tobacco, Santa Fe Natural Tobacco, Lane Limited and R.J. Reynolds Global Products. R.J. Reynolds Tobacco, the second-largest U.S. tobacco company, manufactures about one of every three cigarettes sold in the U.S., including five of the nation's 10 best-selling brands. The company was founded in 1875 and trades an average of 1.6 million shares per day with a marketcap of $26 billion.

    The stock pays an annualized dividend of $2.36 for a yield of 5.1%.
    52-Week Range: $31.82 to $46.61
    Book Value: $10.42
    Price to Book: 4.41

    The trailing 12-month price-to-earnings ratio is 16.0, the mean fiscal year estimate price-to-earnings ratio is based on earnings of $2.95 per share this year.

    In the last three years, the average dividend paid per year is $1.91. Over the last five years, the dividend has grown by an average of 9.4% per year.

    Shares have moved higher in the last month with a 3.1% improvement. The last date Reynolds American released earnings was June 24 and the closing price before earnings was $45.35. Based on a recent price of $46.15, shares are up 1.8%.

    Shares are in a strong uptrend with the moving averages trending higher as well.

    A small 2% short interest, demonstrating short sellers do not believe the shares are expected to move lower. RAI Revenue Chart RAI Revenue data by YCharts

    SDRL Chart SDRL data by YCharts

    Seadrill Ltd (SDRL)

    Who They Are: Seadrill Limited trades an average of 2.8 million shares per day with a marketcap of $18.5 billion.

    Seadrill currently pays an annualized dividend of $3.20 for a yield of 8.1%.
    52-Week Range: $25.88 to 42.07
    Book Value: $13.04
    Price to Book: 2.81

    The trailing 12-month price-to-earnings ratio is 13.8, the mean fiscal-year estimate price-to-earnings ratio is 12.2, based on earnings of $3.20 per share this year.

    In the last three years, the average dividend paid per year is $1.58.

    In the last month the stock has really moved higher with a 15.4% increase. May 14 was the last earnings release with a closing price of $36.25. Relative to a current price of $39.60, shares are up 9.2%.

    The short interest is relatively low at 2.87%. The chart recently moved into a full bull trend. No analyst currently has Seadrill as a sell rating.

    SDRL Revenue Chart SDRL Revenue data by YCharts

    DUK Chart DUK data by YCharts

    Duke Energy (DUK)

    Who They Are: Duke Energy trades an average of 5.3 million shares per day with a marketcap of $30 billion.

    Investors are receiving $3.06 in annualized dividends for a yield of 4.54%.

    52-Week Range: $51.76 to 69.85
    Book Value: $51.08
    Price to Book: 1.28

    The trailing 12-month price-to-earnings ratio is 15.5, the mean fiscal year estimate price-to-earnings ratio is 15.4, based on earnings of $4.27 per share this year.

    In the last three years, the average dividend paid per year is $2.90.

    In the last month the stock has fallen 4.7%. Last quarter Duke Energy's earnings release was held on May 4 and the previous closing price was $64.68. Relative to a current price of $67.46, shares are up 5.1%.

    The short interest is relatively low at 1.49%. No analysts recommend selling.

    DUK Revenue Chart DUK Revenue data by YCharts

    LLY Chart LLY data by YCharts

    Eli Lilly & Co. (LLY)

    Who They Are: Eli Lilly trades an average of 8.5 million shares per day with a marketcap of $50.6 billion.

    Investors are receiving $1.96 in dividends for a yield of 4.42%.
    52-Week Range: $34.49 to $44.51
    Price to Book: 3.38

    The trailing 12-month price-to-earnings ratio is 11.6, the mean fiscal year estimate price-to-earnings ratio is 12.9, based on earnings of $3.33 per share this year.

    In the last three years, the average dividend paid per year is $1.96. Over the last five years, the dividend has grown by an average of 4.1% per year.

    Shares are slowly but steadily climbing in the last 30 days. Shares are now 2.8% higher than last month. Last quarter LLY's earnings release was June 25 and the previous closing price was $43.12. Relative to a current price of $44.37, shares are up 2.9%.

    The short interest is relatively low at 1.38%. If there is something wrong at the company, short sellers haven't found it.

    Shares are in a strong uptrend with the moving averages trending higher as well. LLY Revenue Chart LLY Revenue data by YCharts

    MO Chart MO data by YCharts

    Altria Group (MO)

    Who They Are: Altria Group trades an average of 8.9 million shares per day with a marketcap of $72.5 Billion.

    Altria Group pays a $1.64 dividend for a yield of 4.57%.
    52-Week Range: $24.36 to $35.94

    The trailing 12-month price-to-earnings ratio is 16.6, the mean fiscal year estimate price-to-earnings ratio is 16, based on earnings of $2.21 per share this year.

    In the last three years, the average dividend paid per year is $1.45.

    Shares have moved higher in the last month with a 4.1% improvement. In the previous Altria Group's earnings release on June 24, the closing price before earnings was $35.57, compared to a recent price of $35.90.

    The short interest is relatively low at 2.5%.

    MO Revenue Chart MO Revenue data by YCharts

    VZ Chart VZ data by YCharts

    Verizon Communications (VZ)

    Who They Are: Verizon trades an average of 14.5 million shares per day with a marketcap of $126.3 billion.

    The stock has an annualized $2 dividend for a 4.45% yield. 52-Week Range: $33.12 to 45.89

    The trailing 12-month price-to-earnings ratio is 19.2, the mean fiscal year estimate price-to-earnings ratio is 17.5, based on earnings of $2.50 per share this year

    In the last month the stock has fallen 0.1%. In the previous Verizon's earnings release on June 19, the closing price before earnings was $44.54, compared to a recent price of $44.90.

    A small 1.5% short interest, demonstrating short sellers do not believe the shares are expected to move lower.

    In the last three years, the average dividend paid per year is $1.91. Over the last five years, the dividend has grown by an average of 3.9% per year.

    Shares are in a strong uptrend with the moving averages trending higher as well. VZ Revenue Chart VZ Revenue data by YCharts

    T Chart T data by YCharts

    AT&T (T)

    Who They Are: AT&T trades an average of 27.3 million shares per day with a marketcap of $212.8 billion.

    The stock pays an annualized dividend of $1.76 for a 4.74% yield.

    At nearly 30 million shares traded per day, Ma Bell is No. 1 in terms of liquidity in this list. This doesn't mean it's the best, because more than a simple yield amount is needed to determine if a stock is right for your portfolio, but you may want to take a serious look to see if your portfolio can benefit from exposure to AT&T.

    52-Week Range: $27.41 to 36.20

    The trailing 12-month price-to-earnings ratio is 15.9. The mean fiscal year estimate price-to-earnings ratio is 14.9, based on earnings of $2.38 per share this year.

    Investors are currently receiving $1.76 in dividends per year.

    During the last three years, the average dividend paid per year is $1.68. Over the last five years, the dividend has grown by an average of 5.3% per year.

    Shares are modestly higher from a month ago. The last date AT&T released earnings was June 24 and the closing price before earnings was $34.63. Based on a recent price of $37.14, shares are up 8.5%.

    T Revenue Chart T Revenue data by YCharts

    At the time of publication, the author was long RSH and may soon enter into a long position with any other stock mentioned.

    This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.